CAP: Romania to require leveling of direct payments for new member states
Romania’s move is backed by another seven member states, namely Hungary, Bulgaria, the Czech Republic, Poland, Slovakia, Lithuania and Latvia.
Romania has also proposed the European Commission to extend, after 2009, the possibility to use the funds from the rural development for direct payment.
Another sensitive point within the debates is the mechanisms related to the intervention on the market.
According to the MADR, many member states cold agree to give up the intervention mechanisms because of the current situation as regards the high price of the agricultural products.
In spite of the fact that the cereal production in Romania has been smaller over the past years because of unfavorable weather conditions, (excessive draught, flooding), Romania continues to be an important cereal producer. Also, the maintaining of the intervention mechanisms on the cereal market, for wheat in particular is needed to avoid imbalances that might emerge.
The Commission has proposed the simplifying and harmonization of the current recommendations as regards the public intervention, by expanding a system of auctions (by using mechanisms similar to the stock exchange ones), so that this should be “a safety net” for farmers.
Also proposed was that subsidies for the private storage of butter, for the powder milk used to feed animals and for the production of casein should be optional, leaving the Commission to decide whether it should or should not be implemented.
As regards the elimination of subsidies for the private storage of cheeses with a long-term maturing and storage, Romania wished that these should not be completely eliminated, but applied optionally.
The evolution of the economic and environmental conditions introduces two types of risk for farmers, namely, market risks, generated by the evolution of prices and production risks caused by the weather and sanitary conditions.
The member states can use up to 10% of the national ceiling in order to grant specific support forms, (support for the risk management, insuring the crops and compensating losses emerged after outbreaks of plant and animal disease).The new regulation allows the co-financing of the premiums for insurance against natural calamities, from the funds allotted to farmers through Axes 1.